Treatment of Business Synergy for Transfer Pricing Purposes: Critical Analysis of Sections 367(d), 482 and 936 of the Internal Revenue Code and Government Proposals

This article addresses the legal issue arising in the United States when the Internal Revenue Service and taxpayers face cross-border transfers of intangibles in outbound transactions (i.e. situations where the acquirer is a foreign entity), specifically where synergy is the intangible to be valued and taxed under current US transfer pricing rules.